Opportunities for Investors SHARE IN THE MINERAL WEALTH OF FIJI6 January 1997 Fiji has long been recognised as an area of good geological potential. Emperor Mines Limited (EML) recognised this potential back in 1932, when they established Fiji's first gold mine at Vatukoula. EML have now been operating at Vatukoula for over 60 years. By the look of EML's recent exploration results they may well be here for another 60 years. It is without doubt that Fiji is minerally prospective. But why, we ask ourselves, do we not have the same level of investor interest as exists in other Pacific Island Rim of Fire countries. A recent survey of investor attitudes indicated that investors do not appear to know much about our country, our mineral potential, our policies towards mineral sector investors, or even our mineral taxation package. In line with our on-going 10 year commitment to deregulate the economy and promote private sector investment in Fiji, we are pleased to launch this mineral sector promotional campaign. We anticipate that this campaign will mark an exciting turnaround in our country's mining history. Earlier this year Fiji committed itself to the principles contained in an Investment Policy Statement, which defined the Fiji Government's goals as increasing levels of investment, encouraging market-driven projects, rather than Government-driven ones, and facilitating rather than regulating the private sector. Within the guidelines contained in this Investment Policy Statement, the Ministry of Lands, Mining and Energy has drafted a Mineral Policy Statement. That Statement, which follows, states very clearly how a mineral sector investor will be treated in Fiji. We consider this as the first step towards increasing the level of mineral sector investor interest in Fiji. We hope that this document will help provide answers to many of your questions, and explain clearly why you should invest in Fiji, the incentives that you will be offered, and the level of service you will receive. Hon. Rt. Timoci Vesikula Minister for Lands, Mining & Energy [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ]
[Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Fiji stands out amongst Pacific island economies in terms of the size of its natural resource endowment and its level of economic and social development. It has a relatively well-educated population, a well-developed entrepreneurial class, good physical infrastructure and it is the commercial capital for much of the Pacific island economic activity, as well as being the focal point for much of the South Pacific island trade. Its central geographical location also gives Fiji favourable access to international markets. Fiji is the one of the largest South Pacific island countries in population and land area. The population is concentrated on the two largest islands, Viti Levu and Vanua Levu, with the nation's capital, Suva, located on Viti Levu. The Fiji economy is the most developed in the region. It has one of the highest average income levels of the South Pacific island countries. Indeed, the high income level is reflected in favourable social indicators, with most of the major indicators placing Fiji above the regional average. Following a slowdown in economic growth in the late 1980's the Fiji Government launched a far-reaching economic reform programme that sought to deregulate the economy and promote the development of internationally competitive industries and encourage private sector investment. The Fiji Government has adopted a development policy that focuses on increasing the level of foreign and domestic investment in Fiji. As part of this policy, much emphasis is being placed on infrastructure improvements, such as the development of new roads, the reticulation of electricity and water, and improved domestic and international communication systems. Fiji has two international airports: Nadi, which is Fiji's principal gateway, often regarded as the "crossroads of the South Pacific" and Nausori airport near Suva. Ferries and domestic airlines offer daily links to other major islands. Fiji also has 4 major ports, two located on Viti Levu, one on Vanua Levu and one on Ovalau. The fully-Government owned companies, Post Fiji Ltd., and Telecom Fiji Ltd provide all postal and domestic telephone services. Mobile cellular telephone services are provided by Vodafone (Fiji), and international telephone services are provided by Fiji International Telecommunications Ltd (FINTEL). Telecom Fiji Ltd. also provides Internet connections, thereby making access to the 'information super-highway' possible and affordable for local users. Wherever existing infrastructure is not sufficent to meet the needs of a mineral sector investment project, Government will seek, wherever possible to facilitate such construction, providing that it serves both mine and public purposes. To be considered for Government participation, infrastructure projects must: be cost effective, have quantifiable social benefits, contribute to rural or social development, and be within the general scope of public sector infrastructure investment planning criteria. The nature of Government's involvement will vary according to the type of infrastructure required, although, in general Government takes a flexible approach towards infrastructure development and management. One of Fiji's advantages is a relatively well educated population and a highly skilled labour force. Education coverage and standards are among the best in the region. The World Bank, in its publication Fiji Education Sector Overview, Pacific Islands Education Study, 1995, noted that approximately 90% of students complete six full years of education, and more than two thirds of the labour force have some secondary education. Proper authority, in the form of a permit, is required for all those wishing to work or reside in Fiji. Work permits are issued to people holding non-immigrant visas by the Department of Immigration. The Immigration Department which controls the localisation process, has adopted a facilitatory approach towards mineral sector investors, recognising the specialised labour requirements of that industry relative to other sectors. There are no strict localization targets or rigid localization schedules in Fiji. However, experience has shown that Fiji workers are highly trainable, flexible and motivated. Fiji is home to 778,000 (1994 estimate) people of diverse ethnic origins. The population comprises indigenous Fijians (50%), people of Indian origin (44.8%), European, Chinese and others (5.2%). English is the official language, although the various ethnic groups speak their own vernacular. Project sponsors are urged to see that all construction and operating personnel undergo a social orientation course about the people and customs of the mining region. Government, through the Mineral Resources Department, and the Ministry of Fijian Affairs, will coordinate such courses. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] As part of Government's outward-looking growth policy an Investment Policy Statement (IPS) has been drafted by the Ministry of Commerce, Industry, Trade and Public Enterprise. The IPS clearly identifies Government's new direction in terms of investment policy principles, these are:
The IPS covers a wide range of areas of interest to investors, including: investment promotion and facilitation, investment incentives, guarantees to investors, the investment approval process, and Government's infrastructure development policy. The next step in this process which has already begun, is to document rules for:
When completed, these rules will be available for all investors from the Fiji Trade and Investment Board (their address is given on the sheet listing Key Sector Contacts). Treatment of Foreign Investors Foreign inputs are expected to play a major role in Fiji's growth, and for this reason the Government is determined to improve the investment climate in Fiji for foreign investors, as well as for local entrepreneurs. In principle, the Government will encourage any project found suitable for location in Fiji, provided it satisfies certain broad criteria, namely that the investment will; contribute to Fiji's economic and social development; broaden Fiji's economic base; provide opportunities for significant local equity participation, particularly in projects that involve the utilisation of the country's natural resources, possibly through joint ventures; generate increased exports; provide training and employment opportunities for local people; involve maximum processing of products in Fiji; and involve the enterprise in the provision of maximum common-use facilities, such as labour and roads. Specific requirements for foreign investors are: introduce adequate funds for proposed projects, with a debt to equity ratio of no greater than 3:1; pay a fair price for assets acquired locally; obtain approval to remit dividends and profits from the Reserve Bank of Fiji for tax clearance and statistical purposes; obtain Exchange Control approval from the Reserve Bank of Fiji for any investment in Fiji securities; obtain work permits for expatriates and, wherever possible, train local employees to fill their positions. While there is no restriction on foreign investors acquiring a controlling interest in locally owned existing businesses, there is a limited list of areas restricted to local investors only, although this is being revised with a view to reduce restrictions. This list is currently under review. Essentially, the restrictions/conditions for investment are designed to ensure that only those investments which are economically and developmentally desirable for Fiji proceed. Investment in the Mineral Sector Government believes that overseas investors are most attracted to those countries with an open exploration administration system where the rights of investors to develop their discoveries (or continue with promising exploration prospects) are clear. In Fiji the investor's right to continue exploration / development programs is written in the Mining Act. The guiding principle of Fiji's mineral investment policy is that Government assumes that the grant of an exploration licence implies a right to proceed to eventual project development; this is subject to the licence holder maintaining a vigorous geological and/or feasibility study program approved by the Minister responsible for Mineral Resources. Investors Rights and Guarantees The Government of Fiji is aware of the risks that mineral exploration and development companies take, and sees a role for itself in creating an investment climate in Fiji which offers investors security. The 1990 Constitution of Fiji provides a first stage guarantee for investors, in Section 9 against the compulsory acquisition of property (including mining tenements) except (and only with an order authorised by the Supreme Court) in certain specified condition spelt out in the Constitution. In addition, Fiji is a signatory of the Multilateral Investment Guarantee Agency (MIGA). MIGA is an independent agency of the World Bank mandated to help facilitate increased flows of foreign direct investment to developing countries. Its core area of business is providing political risk insurance to foreign investors; available risk coverage includes war and civil disturbance, currency transfer/inconvertibility, expropriation and breach of contract. Plus Fiji is a member of the International Chamber of Commerce, and the International Centre for Settlement of Investment Disputes. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Section 1 - The Principles Underlying Government's Mineral Policy The Government of Fiji believes that well-managed mineral sector developments contribute positively to national growth and social welfare improvements for all of Fiji's citizens; hence, the Fiji Government actively supports mineral sector developments. State ownership of Fiji’s unextracted mineral resources forms the foundation of Fiji's mineral policy. However, the Government views Fiji's mineral endowment as part of the birthright of every Fiji citizen; and it sees itself as a steward of this birthright. As the steward, the Government has put in place the regulatory mechanisms to ensure that Fiji's mineral resources will be developed in an environmentally sensitive and socially acceptable manner, and that there is an equitable sharing of the financial and developmental benefits and costs of mining between all stakeholders. Government recognises that the private sector is the most able developer of Fiji's mineral resources, and so, confers mineral exploration and development rights on private sector developers. When conferring such rights, Government requires that mineral developers take into account all the social, environmental, and economic costs and benefits of the development at the project planning stage, and throughout the life of the project. History clearly shows that mineral sector developments offer unique benefits as well as pose special problems for communities adjacent to mineral deposits, and Government views the direct participation of residents as an integral part of a successful long term relationship. Direct participation can take the form of special small business opportunities, and direct involvement by the local community with socially important aspects of mine planning, such as social infrastructural development. This participation should begin early in the exploration phase and continue through to mine closure. Essentially, mineral sector developers are encouraged to develop a participatory and collaborative approach to mine planning and development. As well as steward of Fiji's mineral resources, Government sees itself as a facilitator of investment, and acknowledges that the best way returns to investors can be maximised, is through the creation of a favourable investment environment. In this regard the Government has implemented a number of macro-economic policies to encourage investors, such as the signing of the Multilateral Investment Guarantee Agency (MIGA), the creation of an Investment Policy Statement, and the development of numerous non-tax incentives. Government treats all economically viable investment projects equally. Government also accepts that mining is an unusually high risk industry and private investment tends to be attracted to those areas with good geological potential, transparent fiscal policies, and political stability. Hence Government is in the process of introducing a low-rate, competitive, transparent fiscal policy that should enable investors to achieve returns commensurate with the risks that they face. Fiji takes the position that the major inducement to attract mineral sector investors is the opportunity to obtain a return on investment commensurate with the risks faced. In developing the fiscal framework, the Fiji Government has sought to create an internationally competitive package of interrelated measures, which achieves the dual goals of investment promotion and equitable returns to the people of Fiji under a variety of market circumstances. This fiscal framework reflects an attempt to reconcile the national taxation policy with the special needs and characteristics of the mining sector. The Fiji Government’s approach to taxation of mining projects is that the total package of fiscal arrangements enable enterprises to operate in a commercially sustainable manner. The established fiscal framework is considered to provide an environment in which Fiji’s mineral resources can be commercially exploited, without major derogations. Minor variations in the timing and incidence of forms of tax may be negotiated to fit the individual commercial characteristics of a particular mineral deposit and associated market conditions. Foreign mining investors often bring a variety of home-country tax liabilities to their Fiji operations, however, the Fiji Government is reluctant to forego fiscal revenues which will subsequently be taxed by authorities in the investor's home country. Beyond the basic standard fiscal package, the Fiji Government is only willing to discuss the need for incentives for particular projects after the project sponsor has demonstrated that the project has the potential to be economically viable. Requests for such assistance should be submitted at the conclusion of a comprehensive feasibility study. In offering incentives, Government's general approach will be to assist development through interim or transitional relief in the early stages of project development/operation, rather than granting life-of-mine concessions. Mineral tax policy does not exist independently from the general tax system applied to other sectors of the economy. Nevertheless, there are special features of mineral development which must be specifically addressed, namely: the capital (and debt) intensiveness of mining ventures; the cyclical nature of metal markets; and the long and costly period of pre-operational expenditures on exploration and feasibility studies. These issues have been considered in framing the tax package, and so, this package has been conceived as a whole and should not be seen as a collection of separable parts. Section 3 - Exploration & Mining Policy In Fiji, all unextracted minerals belong to the State. Nonetheless, Government recognises that the private sector is the most able developer of Fiji's mineral resources, and hence, allows the private sector complete and open access to develop Fiji's mineral resources. Government does not require equity participation, or any other form of direct involvement in mineral development projects. Fiji's exploration and mining administration system is open and unbiased. The guiding principle is that exploration and mining rights are given to any candidate, who by merit, can show Government that they have the capability to carry out an agreed upon work programme. In the case of multiple applicants for a tenement, rights are allocated to the first qualified applicant. This system supports and protects the rights of all investors, both local and foreign, to prospect, explore and mine their mineral discoveries. Investors rights to mineral tenements, and their security of title are enshrined in Fiji's Mining Act and Regulations (Cap. 146). Mineral Resources Department (MRD) is the Government agency responsible for administering this statute. Licence holders who exercise due diligence in carrying out, and comply with the proposed activities detailed in their Prospecting Licence, including maintaining a vigorous exploration programme, and accurate, timely comprehensive reporting in accordance with the Mining Act, are guaranteed continuity of title, implying a right to proceed to project development. Over time, Licence holders are expected to relinquish a portion of their prospecting area. While the Fiji Government is very keen to encourage legitimate prospectors and mineral explorers in Fiji, it does not want to see prospective land tied up by companies that are only interested in speculative ventures. MRD will actively discourage any company attempting to engage in such speculative ventures. Prospecting Licence holders have a right to progress from prospecting to mining if they have complied with the licence conditions and they have proven that a minable resource exists. Permits to Mine can be issued for a maximum of 2 years, and are renewable annually. Mining Leases and Special Mining Leases can be issued for 5 to 21 years. All leases are renewable at the end of the initial licence period. The period of the renewal depends on the size of the proven resource. Section 4 - Sustainable Development Policy Government's main aim for the mineral sector is to ensure that developments proceed in a sustainable manner. Sustainable mineral sector projects are those that effectively incorporate community participation during the corporate decision-making process, that ensure an equitable distribution of the benefits arising from mine developments, and that, having carefully assessed the socio-environmental impacts, minimise these impacts. Government sets environmental policies at two levels; the Department of the Environment coordinates the formulation and implementation of national policies, while MRD, as the main regulating agency for the mineral sector, sets complementary mineral sector policies. For the purposes of the on-going monitoring/compliance programs, Fiji adopts a pragmatic policy towards compliance with acceptable socio-environmental standards and pollution abatement technology. Government places more emphasis on mining companies complying with agreed emission levels, than with the methods of abatement to achieve compliance. This then provides investors the flexibility to choose measures which will reduce pollution levels in the most cost effective manner, subject to Government approval. Government promotes a self-regulatory approach to environmental monitoring. While the Government formulates and sets socio-environmental standards, it undertakes to work with the mining industry to develop codes of practice that will enable the mining industry to meet or exceed such standards. Government recognises and enforces the polluter-pays-principle. The developer will be liable to pay compensation to any person or community whose lifestyle or income is adversely affected by the socio-environmental impacts of the mine. In addition, the developer is responsible for all costs associated with mitigation and rehabilitation activities as required, from initial exploration to post-closure of mining activity. Government requires that mining companies take precautionary measures to prevent or minimise negative socio-environmental impacts of mining. In instances where there is a significant risk of serious or irreversible damage, or an element of scientific or technical uncertainty exists regarding elements of mine development, Government then expects that precautionary abatement/mitigation measures be taken. Where such measures are required they will be expected to address the worst case scenario. In addition to the Mining Lease, developers are required to obtain a Land Lease to gain legal title to the land (land in Fiji is divided into 3 types, Native Land: 83% of all land in Fiji, Crown Land: 9%, and Freehold Land: 8%) on which they intend to mine. The Mining Lease and Land Lease (or Titles) confer on the developer the right to undertake specified activities in a defined area as stated in the leases. Government acknowledges that security of land tenure is a critical issue for mineral sector investors. Hence Government is totally committed to enforcing investors land rights which are enshrined in both the 1990 Constitution and the Land Transfer Act (Cap. 131). The Land Lease itself is a legally binding document that guarantees security of land tenure. However, developers should be aware that in the long run, good communications with landowners are most likely to minimise land disputes during exploration and mining operations. In island communities where land is in short supply, land problems are often associated with landowner dissatisfaction over the terms of compensation payments for land acquisition, surface land disturbance, and the loss of traditional land use. Without special compensatory policies, landowner grievances can become a significant impediment to harmonious long term mine operations. Prior to mine construction, mining companies must obtain formal agreement with the area residents, through the appropriate channels, regarding compensation payable for loss of tenure and damage to surface improvements. All compensation negotiations must be channelled through the appropriate official agencies in consultation with MRD. The agencies (Native Lands Trust Board and the Government's Lands Department) which assist mining companies with land compensation negotiations have as their main aim promoting projects which maximise benefits to the current and future land owners of the proposed development area without jeopardizing project viability. Unextracted minerals belong to the State, however, mining Royalty payments are paid to Government but then distributed to landowners. Developers must recognise that the Royalty payment, for the right to extract minerals, and the compensation payments, for landowner loss of tenure and damage to land and improvements thereon are separate. Clear guidelines on how to assess each are provided in the Mining Act, the Native Land Trust Act (Cap. 134) and the Crown Acquisition of Lands Act (Cap. 135). Where land is required for a mine, and cannot be acquired through a voluntary agreement with land owners, an established procedure for compulsory acquisition exists. Section 6 - Housing, Social Regional Impact Policies In many developing countries medium and large scale mineral developments are often accompanied by significant social and cultural impacts. Government sees the creation of a workable social adjustment strategy as arising from a partnership in which investors, government and local groups participate. The terms of this partnership need to be clearly defined from the outset, and should be designed to minimize social/cultural impacts, and ensure that dislocations occur in a gradual and well-planned manner. Government believes that addressing the social impacts of a major mining project is the joint responsibility of the government and the project sponsor. Mining companies are encouraged to take a direct interest in community relations and to undertake social initiatives in their own interests. While Government will undertake aggressive social adjustment programs, it also believes that direct participation and input by the mining company must be forthcoming to ensure the success of such programmes. Section 7 - Labour & Employment Policy Even though the number of jobs created by mining is likely to be modest, labour and employment policies in the mining sector are very important to the Fiji Government. On the positive side, Government sees the mining sector as attracting relatively well paid, high-skill positions which can be directly transferable to other sectors of the economy. On the negative side, if mines use their ability to pay high wages to attract skilled workers away from other sectors, inflationary wage pressures can quickly emerge. In Government's view the key to maximizing benefits and minimizing wage pressures is for mining companies to pursue an aggressive program of skill training designed to maximise the participation of local citizens. These complementary programs of skill training and job localisation form the core of Government's labour policy for the mining sector. While Fiji has a free collective bargaining system, mining companies are expected to adhere closely to national wage policy and to practice wage restraint. An effective dispute settlement procedure is established in Fiji and is incorporated into comprehensive labour legislation. Fiji's labour laws are found in the following Acts: Employment Act (Cap. 92), Workmen's Compensation Act (Cap. 94) Trade Unions Act (Cap. 96), the Trade Unions (Recognition) Act (Cap. 96A), the Trade Disputes Act (Cap. 97), and the Wages Councils Act (Cap. 98). All are administered by the Department of Labour. Section 8 - Infrastructure Policy Government understands that a major mining project requires substantial infrastructural investment. This investment may, in many cases, be critical to the financial viability of the project. While Government does not normally finance specialized infrastructure, Fiji is willing to participate in multi-use infrastructure projects where major benefits accrue to the public-at-large. The conditions of such assistance will be judged on a case-by-case basis. All mineral project infrastructure is expected to comply with existing technical specifications, of similar infrastructure already in use in Fiji, as determined by the relevant Regulations. Regulations governing the various areas of infrastructure include: Electricity Act (Cap. 180), Housing Act (Cap. 267), Ports Authority of Fiji Act (Cap. 181), Roads Act (Cap. 175), Sewerage Act (Cap. 111), Telecommunications Act (Cap. 173), Water Supply Act (Cap. 89). Each Act is administered by the relevant authority. Wherever possible, mine infrastructure should be compatible with existing infrastructure and should be maintainable through normal supplier networks within Fiji. Where project infrastructure transits areas outside the immediate mining lease area, access should be available to the general public on the basis of national policy. All infrastructure planning should take place in full consultation with the appropriate technical authorities within the Fiji Government. Government believes that close liaison between Government and the mining company for infrastructure developments will ensure compatibility with existing infrastructure and provide the mine developer with a realistic appraisal of local conditions. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Fiji lies at the midpoint of the opposing Tonga-Kermadec and New Hebrides convergence zones, separated from these actual convergence zones by two extensional back-arc basins, the North Fiji Basin to the west and the Lau Basin to the east, and a series of transform faults including the Fiji Fracture Zone and the Matthew-Hunter Ridge. Most reconstructions of the past configuration of this part of the Pacific indicate, however, that Fiji was not so long ago an integral part of the Pacific "Rim of Fire", the complex plate boundary between the Pacific and the Indo-Australia Plates. This boundary is well recognised as the locus of several major world-class porphyry copper-gold and epithermal gold systems. Before the Late Miocene, roughly 8 million years (Ma) ago, the Pacific crust was subducted from the east along this plate boundary, with Fiji forming part of an extended Outer Melanesian island arc system, the Vityaz (or Vitiaz) arc, that incorporated the Solomon Islands, New Hebrides, Fiji and Tonga island arcs. Remnants of this subduction zone are preserved as part of the Vityaz Trench, whilst Eocene-Miocene cores of the ancient arc system form part of the geological basement in Tonga ('Eua), Fiji (Viti Levu) and Vanuatu. Subduction along the Vityaz arc-trench system was partially blocked through the arrival of a thick sequence of oceanic crust (Ontong Java Plateau) at the portions of the trench along the Solomon Islands and northern New Hebrides. Subduction was effectively immobilized and later reversed in the areas to the north and west of the Fiji arc. Shortly after this reversal, back-arc spreading began to the west of Fiji, forming the North Fiji Basin, with clockwise rotation of the New Hebrides Arc to the southwest, away from Fiji, and anticlockwise rotation of the Fiji Platform. Further breakup of the arc occurred in more recent times (about 5.5 Ma) with the initiation of intra-arc extension behind the Tonga Trench. This caused the opening of the Lau Basin, separating the remnant Lau Ridge from the active Tofua Arc in Tonga. Much of the younger (Late Miocene to Pliocene) structural and volcanic features of the Fiji Platform can be related to transformation of the older arc to its present-day configuration through creation of the North Fiji and Lau Basins. This period also saw major changes in volcanism throughout the group, with initial eruption of voluminous shoshonitic volcanics in northern Viti Levu (5.5 to 3.0 Ma) followed by later alkalic volcanism more akin to oceanic basalts. In terms of crustal development, the geological evolution of Fiji can be viewed as having had four main stages: (a) Early arc stage (35-12 Ma); (b) Mature arc stage (12-7 Ma); (c) Early arc rifting stage (7-3 Ma); and (d) Late arc rifting stage (3 Ma onwards). These stages reflect the growth of Fiji as an island arc, its maturity and final arc breakup, with the early periods (up to 7 Ma) dominated by subduction-related geology, and geochemical signature changing to a later regime more related to extension, with relatively diminished amounts of subduction component. Fiji's location along the boundary between the Pacific and Indo-Australia Plates implies that it has major potential for porphyry copper-gold and epithermal gold mineralization. This plate boundary hosts major epithermal gold deposits and copper-gold porphyry systems in northern and eastern PNG at Lihir (Ladolam Deposit), Porgera, Ok Tedi and Misima, in the Solomon Islands, at Gold Ridge, and at Emperor and Mt Kasi in Fiji. Several similar epithermal gold deposits have been found on the Coromandel Peninsula, in New Zealand's North Island. Bougainville (North Solomons Arc) and Namosi (Fiji) are two major porphyry-copper deposits. Mineralisation styles in Fiji can be broadly correlated to the various phases of arc evolution. In the Fiji archipelago, early Tertiary rocks are found only on Viti Levu and in the Mamanuca, Narokorokoyawa and Yasawa islands, where there is a succession of volcanic rocks and their sedimentary derivatives with minor intercalations of carbonate rock. The succession ranges in age from Late Eocene to Oligocene. This stage is characterised by a geochemically primitive low-K tholeiitic series of volcanics trending towards slightly more evolved types including low to medium-K calc-alkaline types within Wainimala Group rocks exposed in the Yasawa and Mamanuca islands. Mineralisation is restricted in the most part to the Wainimala Group and comprises: (a) important massive sulphide occurrences at Colo-i-Suva, Wainaleka and the Wainivesi district of southern, southeastern and eastern Viti Levu; and (b) manganese mineralisation in SW Viti Levu hosted within volcanics and associated sediments, particularly in the Sigatoka and Nadi Basins. The mature stage of arc development is dominated by plutonic rocks, the Colo Plutonic Suite comprising primarily low-K tholeiitic gabbros, tonalites and trondjhemites. The later part of the Late Miocene was a period of intense orogenic activity in Fiji during which folding and faulting of the Wainimala and Tuva Group rocks occurred. The cores of some folds contain elongate plutonic bodies assigned to the Colo Plutonic Suite. Mineralisation within this stage is widespread and comprises: (a) numerous vein systems carrying base and precious metals occurring close to, and probably related to the Colo plutonics, particularly in SW Viti Levu (Momi and Kubuna areas); (b) disseminated mineralisation within the roof zones of the various Colo plutonic stocks and the various Wainimala host rocks, pyrite and minor base-metal mineralisation being widespread throughout the Wainimala-Colo volcano-plutonic belt; and (c) skarn-type mineralisation associated with various plutonic stocks, consisting of small but relatively high-grade deposits distributed throughout the plutonic belt. The initial part of this stage is marked by eruption of voluminous tholeiitic to calc-alkaline rocks, particularly in SE Viti Levu (Namosi Andesite), and the later part of the stage by the extensive development of varied volcanism on Vanua Levu. In northern Viti Levu the later parts of this stage, c 5.5-3.0 Ma, saw extensive eruptions of shoshonitic volcanics (Ba and Koroimavua Volcanic Groups). Mineralisation is similarly extensive and varied in nature and intimately related to the various volcano-intrusive centres. They include the following types: (a) major porphyry-type copper deposits associated with the Namosi Andesite at Namosi - the Waisoi, Wainabama and Waivaka deposits - together with their associated skarns and peripheral epithermal vein systems; (b) massive sulphide mineralisation associated with acid volcanics of the Udu Volcanic Group at Nukudamu, Wainikoro, Mouta and Coqeloa in NE Vanua Levu; (c) epithermal gold deposits within the Ba-Koroimavua volcanic centres of northern Viti Levu at Vatukoula, Vuda, upper Sabeto Valley, Tuvatu and Rakiraki; and (d) important epithermal gold mineralisation related to tholeiitic volcanism of the Natewa Group on Vanua Levu, particularly in the Yanawai District (Mt Kasi), and at Koroinasolo, Waimotu, Dakuniba, and Savudrodro. Volcanism of this stage had an oceanic character, with eruption of ocean-island basalts on Taveuni and in SW Vanua Levu (Bua) and parts of Lomaiviti and Lau. High-K calc-alkaline andesites were erupted on Kadavu. Mineralisation is minor and is dominated by residual and placer type deposits. Deposits are represented by: (a) epithermal vein-type deposits within the high-K andesites on Kadavu; (b) surficial residual bauxite deposits developed on erosion surfaces at Drasa (Lautoka) and Wainunu (Bua); and (c) placer-type deposits at Waimanu (gold) and in the Sigatoka sand dunes and the Ba Delta (magnetite). Tavua Goldfield The Tavua Goldfield is situated in northern Viti Levu within and along the margins of the caldera of the Tavua Volcano. Payable quantities of gold were discovered in Lololevu Creek, at the site of the present mine complex in 1932. Emperor Gold Mining Co. Limited (EGM), an Australian-listed company, has been mining and exploring for gold in the Vatukoula area, in the Tavua Goldfield for more than 60 years. The rocks of Tavua Volcano were derived from a potassium-rich magma of the shoshonite association with an apparently relatively simple evolution from an absarokite (olivine-basalt) parent magma to shoshonite, banakite (trachyandesite) and monzonite derivatives. Mineralisation at Vatukoula is located within a large fractured block created where prominent northwest-striking shears intersect the north-striking caldera fault zone. The major lodes cover an area of 2 km2, and are mostly within 600 m of the surface. Lodes occur in three main structural settings: i) steeply dipping northwest-striking shears; ii) flat-dipping (10-40 ) fractures (flatmakes); and iii) shatter blocks between shears. Most of the gold and silver occurs in tellurides and there are also significant quantities of gold in pyrite. From the commencement of mining in 1933 to June 1994, the goldfield produced about 4.69 million ounces from 15.6 Mt of ore. In June 1994, the proven and probable underground ore reserves at the mine were estimated at 1.81 Mt at 7.07 g/t Au (411 000 ounces). Total underground geological ore resources (measured, indicated and inferred) were estimated at 7.45 Mt at 7.37 g/t Au (1 765 000 ounces). In addition, a previously built tailings dam contains an additional 257 000 ounces of gold with a proven and probable reserve classification. Hence the gold contained in known reserves and resources totals over two millions ounces. It should be noted that recent exploration successes in 1996 have led the company to substantially expand their ore-resource estimates by an additional 119 000 ounces. Yanawai District - Mt. Kasi Major mineralisation occurs within a northwesterly trending structural feature termed the Kasi Corridor. Within the zone there are strongly altered, usually silicified rocks, and in addition to the mine area, several other major prospects have been located. The primary ore-bearing minerals identified include native gold, pyrite, enargite (luzonite), tennantite, goldfieldite, chalcopyrite, tellurides and cassiterite. Secondary minerals include covellite, chalcocite and neodigenite. All the recent writers on Mt Kasi have considered it to be epithermal, and because of the abundance of sulphide minerals (up to 20% in silicified rock) it has been classed as being a high-sulphidation (enargite-gold) type. Following extensive diamond drilling in 1992, the latest revised hardrock resource estimate is 1 240 000 t at 3.0 g/t Au, using a cut-off grade of 1 g/t Au. The measured, indicated and inferred eluvial resources total 838 000 t at 1.9 g/t Au, using a cut-off grade of 0.5 g/t Au. The best grades are at shallow level, weathering has produced a significant eluvial gold resource comprising an undifferentiated combination of slumped ore, colluvium and weathered bedrock. Mining commenced early in 1996, initially to mine and treat the eluvial resources followed by open-cut mining of the hardrock resource. The first gold bar was poured on 15 April 1996. Mt Kasi Ltd, the developer, a wholly owned subsidiary of Pacific Islands Gold NL (PIGNL), holds a mining lease for the site, as well as two prospecting licences for adjacent areas. Upper Sabeto Valley - Tuvatu Prospect Tuvatu is one of several gold prospects known from the Sabeto area of northwestern Viti Levu. Other well-known gold and gold-copper prospects close by are at Vuda, Navilawa (Kingston Mine and Banana Creek) and Nawainiu Creek, all associated with known or presumed centres of volcanic activity and/or volcanic core complexes within the shoshonitic Koroimavua Volcanic Group of latest Miocene to earliest Pliocene age. Advanced exploration including extensive drilling at Tuvatu has located numerous auriferous veins and flatmake structures associated with late stage epithermal mineralising events within augite-biotite monzonite of the Navilawa Stock. Initial studies indicated oxide proven resources of 11 350 t at 9.9 g/t; oxide indicated and proven resources of 25 600 t averaging 8.2 g/t. Extensive exploration and drilling activity at Tuvatu is continuing and is managed by Emperor Mines Limited under an option agreement with Geopacific Ltd. EML also manages exploration at the nearby Vuda Prospect under a similar arrangement with a local company. Advanced Prospects: Porphyry Copper Namosi District The mineralised area of the Namosi district lies about 30 km NW of Suva, centred upon the upper reaches of the Waidina River and tributaries, particularly within the Waisoi and Waivaka drainage areas. The major porphyry-copper prospects are located at Waisoi, Waivaka, Wainabama and Wainiwi, and a number of polymetallic vein and skarn systems are also developed peripheral to the main prospects. Mineralisation in the area has been known since the early 1930s but a detailed search for porphyry-copper deposits only commenced in 1968. Between 1968 and the early 1980s, over 50 000 m of drilling was completed and feasibility studies indicated a combined estimate of 590 Mt of ore at 0.47% copper at the two main prospects at Waisoi. The project was unfortunately declared uneconomic. Placer Pacific Ltd commenced re-investigation of the prospect in 1991. The project is still at a preliminary stage and further geological investigations need to be undertaken to complete the exploration stage and to define the mineable reserves and possible surrounding deposits. The Waisoi mineralisation is considered mammoth by world standards, although of low grade. Estimates suggest that the geological resource in the Waisoi East and Waisoi West deposits is close to 950 million tonnes at 0.43% Cu, 0.14 g/t Au, with a cut-off grade of 0.3% copper equivalent, while ore reserves have been calculated at approximately 1.1 billion tonnes at 0.4% Cu and 0.13% Au. For more information about any of these projects please contact the companies directly or the Director of Mines at MRD; the addresses are listed in the section entitled Key Sector Contacts. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] History Of Exploration And Mining In Fiji Since the first reporting of gold in 1868 along the Navua River in the main island of Viti Levu, fossicking and prospecting by lone prospectors and small syndicates, has led to a number of important finds. Gold was first exported from Fiji in 1932, from the mining operation at Mt Kasi, located in Yanawai, on Vanua Levu, the second largest island. Mining at Mt Kasi from 1932 to 1946 extracted ore principally from a large open cut with associated underground workings. Estimates of ore produced during the mining period vary slightly and an acceptable estimate would be 265 000 t of ore grading 7 g/t Au. Also in 1932, economic quantities of gold were discovered near Tavua in Viti Levu. This discovery led to the commissioning of the Vatukoula gold mines, which, after Emperor Gold Mining Company Limited bought out the rest of the small operators within the Tavua Caldera, later became known as Emperor Gold Mines. Although there were numerous other gold discoveries in later years, the Mt. Kasi and Emperor discoveries remained the most prominent due to the quantity of gold they produced. The Mt Kasi mine closed in 1946, having produced 1,803 kg of gold from 266,200 tonnes of ore. The history of mining legislation in Fiji dates back to 1908 when the first Mining Ordinance was enacted to facilitate and regulate mineral sector developments. The first Mining Ordinance granted prospectors and miners the security of tenure and exclusive exploration and exploitation rights that they sought, while simultaneously protecting the proprietary rights of the landowners, protecting the interests of the public, and ensuring that mineral lands were not tied up in the hands of speculators. Between 1908 and 1965 the Mining Ordinance had been updated and expanded in scope 5 times. The changes made in 1965 transferred the administrative control over mineral resources from the former statutory Mining Board to the Department of Mines (now Mineral Resources Department) under the administrative control of the Director of Mines. The Mining Act currently in use was produced in 1978, with revisions to the Regulations made in 1985, although Mineral Resources Department is once again in the process of revising the regulations to ensure compatibility with more recent Government policies. The primary aim of Fiji's mining legislation is to facilitate and regulate the exploitation of Fiji's mineral resources by controlling the activities of prospectors and miners to ensure that, Fiji's mineral resources are exploited in an efficient manner, in the best interests of the community as a whole. Secondly, the mining legislation aims to establish and preserve a suitable climate for mineral exploitation by affording prospectors and miners security of tenure for sufficient periods as to enable them adequately to explore and exploit the areas held by them. Thirdly, it aims to provide that adequate compensation be paid to landowners whose land, from which their livelihood is derived, is adversely affected by mining or prospecting operations. Emperor Gold Mines: EML's mining operations are conducted through its locally incorporated companies; Emperor Gold Mining Company Limited, Jubilee Mining Limited, and Koula Mining Limited which through various joint venture arrangements hold 3 Special Mining Leases as well as several prospecting licences. At the end of 1995, a total of 155,276 kg of gold had been produced from 17.3 million tonnes of ore. During 1995 alone, 3,376kg of gold, and 1,574kg silver were exported from the Emperor gold mines. Emperors existing mines are currently processing around 600,000 tpa from the Tavua Caldera mining leases. The operations comprise 2 shaft accesses (Philip and Smith shafts), and a decline (Emperor Decline). These accesses permit the exploitation of the multitude of ore bodies within the mining leases area. Following a recent exhaustive 2-year exploration programme, the Emperor group has substantially expanded the ore resource estimate by 119,000 ounces of gold, and identified a new orebody 'R1'. As a result, Emperors near-term plans are to expand throughput over the next few years; increasing the current production rate from 600,000 to 1,000,000 ore tonnes treated per annum, upgrade treatment facilities and access the R1 orebody. As part of this expansion programme the Emperor group are also planning to commission mines at the Tuvatu and Vuda prospects over the next 5 years. EML are actively seeking new investors for Joint Ventures in the proposed new mines. Mt. Kasi Gold Mine: The second operation is the recently commissioned Mt kasi gold project, operated by Pacific Islands Gold NL, listed on the Australian Stock Exchange. Mineable reserves at the Mt Kasi Prospect, in April 1995, were 153,000 ounces gold. However, recent exploration has increased the size of these reserves considerably. Mt. Kasi Ltd are scheduled to produce 500,000 tpa, yielding approximately 35,000 oz gold annually over the expected 5-7 year life of the mine, although the increase in mines reserves is expected to increase the life of the operation. The operation will predominately be an open-cut operation. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] One of the main benefits of investing in Fiji over other countries in the South Pacific region, is that there is an easily identifiable, clear land ownership register, an official agency which deals with all native-land use issues, as well as a well-established native land management and administration system. Land in Fiji is divided into 3 main categories. Native Land, Government (State) Land, and Freehold Land. There is no differentiation between them under the Mining Act, all are subject to the State's right of ownership of the minerals. The ownership of all unextracted minerals in the ground, of every description, including crude oil, is vested in the State (the Republic of Fiji) as per Section 3.-(1) of the Mining Act. Native Land is owned by indigenous Fijians and comprises 83% of the total land area in Fiji. Native Land is reserved for the exclusive use of its owners, but can be leased with the owners consent for fixed periods and for particular purposes. Each lease category has different terms and conditions. Leases may be sold, transferred and varied, subject to the consent of the Native Lands Trust Board (NLTB). Leasing costs comprise yearly rental payments plus a separate lease or premium cost. The NLTB is the statutory body which manages and administers land of this type entrusted to it by landowners. Since most land in Fiji is Native Land, most mineral developments will be situated on it and investors will be able to deal directly with the NLTB. About 7% of all land in Fiji is controlled by the Government (State Land) and, like Native Land, may not be sold. Freehold Land accounts for the remaining 10% of the total land area. Of the 2 mines currently in operation in Fiji, the one owned by Emperor Mines Limited is on Freehold Land, the other, owned by Pacific Islands Gold NL, is situated on Native Land. The Prospector's Right holder or mining tenement holder is required to give the owner or occupier of the land notice of their intention to enter their land to prospect or to commence mining operations. In the event that the land is Native Land, the prospector must send copies of such notice to the NLTB and to the Commissioner of the Division in which the land is situated. The Commissioner will advise the prospector on how to proceed with landowner relations. Land Owner Consents and Objections to Applications In the event that a landowner or occupier complains about the activities of a Prospecting Licence holder within their land area, the complaint is submitted to the Director of Mines who can then instruct the tenement holder to comply with any directions given, or if necessary instruct the prospector to desist from prospecting on such land until amicable relations are restored. Compensation payments comprise 2 elements. One element is compensation payable to landowners for permanent damage done to the land. The other element is compensation to the holder of the surface rights to that land, i.e. the occupant/land occupier, lease holder. Neither type of compensation should not be linked to the value of the mineral in the land. It should be noted that landowner compensation is a separate issue to Mining Royalties, as stated in the Mining Act. Compensation payable depends on the type of licence that has been issued. Under a Prospector's Right or Prospecting Licence the level of compensation is most often negotiated in an informal manner, and compensation is paid directly to the landowner. Under a Mining Lease, a Special Mining Lease, a Special Site Right, or a Road Access Licence, compensation levels are determined through negotiations with the landowners and the NLTB. In the recent past, NLTB policy has been to build compensation into the value of the surface rental. To ensure the compliance to the Mining Act and Regulations as well as the Special Conditions attached to the Lease or Licence, including, compensation and rent, prospectors and miners are required to lodge a deposit either in cash or by way of a bond with the Director of Mines to cover all amounts likely to be payable by way of compensation for surface damage. Closed Areas and Protected Areas The Minister is empowered by the Mining Act to declare protected areas, and close specific areas or prohibit or restrict prospecting for any mineral throughout Fiji. The Mining Act describes the classes of land closed to prospecting or mining, and permits the Director of Mines, with Ministerial approval, to make special dispensation in certain cases to allow prospecting or mining in these areas, under certain conditions. The aim of closed and protected areas is to preserve specific minerals or specific areas from development for the purposes of either reserving them for future or specific development or in some cases to avoid disturbance of the occupational rights of the owners or occupies of the land concerned. Investors may apply for limited exclusive prospecting and mining rights over such minerals or areas. These exclusive rights are designed to enable the regulation and control of the mineral development to ensure a degree of conservation whilst permitting limited development. More usually, these limited exclusive rights are used to enable the development of national resource endowments while making provision for wide scale prospecting operations subject to conditions on the future development of mineral reserves discovered during the prospecting stage. As a matter of policy, such lands closed or restricted by the Minister are generally available to prospecting, subject to the imposition of special conditions. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Fiji's Sustainable Development Bill Protection of the environment will be enshrined in the proposed environmental legislation - Fiji's Sustainable Development Bill. This is currently being compiled by the Department of the Environment. It is expected that this Bill will formalise existing policies and principles. Mineral Sector Specific Policies Government recognises the economic contribution of mineral sector developments to national growth, but also accepts that mineral sector developments have socio-environmental impacts. The Department of the Environment (as the national environmental policy formulating body) has established an environmental impact assessment process which provides a framework for the assessment of all socio-environmental impacts of mining projects. Developers are required to submit all information/assessments as required by this process to the Mineral Resources Department (as the primary regulating agency for the mineral sector). Developers are expected to identify anticipated impacts and suggest methods of compliance with acceptable international standards for mine-related environmental releases. They are also expected to provide technical justification for their choice of environmental monitoring program, and for environmentally-sensitive mine-design decisions. The mining industry, in consultation with Government, will formulate an environmental code of practice for its members, and will set acceptable environmental standards. In addition, the industry will be required to devise a self-regulatory mechanism to ensure that its members adhere to the codes of practice. Developers are required to post a refundable bankers guarantee, as surety of best practice. The amount of the bond will be determined by the Mineral Resources Department according to the element of risk associated with the project. The developer will pay compensation to any person or community whose well-being, environment, or income is adversely affected by the mining project. The level of compensation will be determined by Government in consultation with the mine developer and the person or community entitled to compensation, after considering the degree of impact. Compensation is linked to the degree of impact, not to the value of the mineral Wherever possible, mines are expected to rehabilitate progressively during their operation. Government believes that, ultimately, this will reduce the total costs of rehabilitation. In line with Government's adoption of the precautionary principle, and to ensure that sufficient funds are available to complete rehabilitation at mine closure, the mining project developer will be expected to make contributions to a Mine Closure and Rehabilitation Fund. Government accepts that for certain projects, the mine area can never be restored to its original state. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Government's primary aim is to establish a facilitatory investment environment to encourage export-oriented investment. Consequently, Government expenditure has been redirected towards infrastructure and productive areas required by industry. The taxation and incentives structures are also being reformed to offer more internationally competitive tax regimes to investors. Some changes have already been made and numerous others are planned for the forthcoming years. A system of tax incentives for exporters, who export more than 80% of their output, including a Tax Free Factory Scheme, operates. A number of double taxation agreements have also been established, whereby exemptions or tax concessions granted by the Fiji Government are not negated by the imposition of tax in the country of residence of the investor. Such agreements have been signed with Australia, Japan, New Zealand, the UK, South Korea, Malaysia and others. In addition, general incentives are offered to all companies who chose to apply for them. These include customs duty concessions, VAT refunds, withholding tax concessions, accelerated depreciation, carry forward of losses, among others. Mineral sector investors wishing to invest in Fiji can apply for industry-specific tax concessions and exemptions from the Government of Fiji under the auspices of the Income Tax Act (Cap. 201) and the Customs Tariffs Act, 1986. The major elements of the fiscal package include the following: Royalty Tax - Royalties are levied on the Free-On-Board (FOB) value. The rates are: 3% on bauxite or iron ore, and 5% on all other minerals. Under certain circumstances, mining companies with marginal projects, that are bordering on viable, can apply for a reduced rate for the initial debt repayment period, if it can be proved necessary to achieve mine viability. Export tax - Export tax is payable at a rate of 3% of FOB value of gold and other metallic minerals. Government policy is to ensure that the sum of Royalty plus export tax does not exceed 5% of FOB value. Customs Duties - Government proposes to introduce a low standard import duty that will be levied according to the Customs Tariffs Act. Where that duty is payable on primary or intermediate inputs into commodities or products that are exported, the duty will be refunded. Until this policy is implemented, mining companies will continue to pay import duties (fiscal duty) at varying rates on most goods required for a mining venture. Import duty of 5% is payable on imports of initial capital equipment including specialised equipment and machinery; specialised spares for heavy equipment and machinery; and chemicals used in the mining process. For imports of fuel for power generation the rate is 10 cents per litre. Investors can apply to the Comptroller of Customs for customs duty concessions, such as: remission or reduction in duty paid for goods imported into Fiji (including imported machinery and equipment, parts and materials) which will be of benefit to the country or if they will be used to promote economic development or develop Fiji's industry. VAT - VAT is payable at 10%. For businesses which export more than 80% of their product, the VAT of 10% is usually fully refundable. Company Income Tax - As part of its Company Taxation Review, Government proposes to reduce the rates of company income tax applicable to all companies. Until then, existing company income tax rates of 35% for resident companies, and 45% for non-resident companies apply. Under the existing Income Tax Act, there are a number of concessions for which mine developers may apply: a mining venture can apply for reduced tax rates or for a total tax holiday, for a period determined by the Minister, if the development is likely to be expedient to the economic development of Fiji; a taxpayer with a valid mining tenement may deduct from total income, (i.e. income generated from all sources) all amounts expended on prospecting for minerals in Fiji, at the Commissioner's discretion; where profits have been derived from the sale of a mineral, or from a right in or a right to work such minerals, the taxpayer may deduct an amount equal to the cost of those minerals, or that right in determining total income. Depreciation - a mining company incurring capital expenditure within Fiji in the acquisition of a mining lease or in the development of mines for the extraction, treatment, refinement and sale of minerals may, as an alternative to normal depreciation, apply for accelerated depreciation on buildings, plant and machinery in any 5 out of 8 years . Dividend, Interest, Know-How and Royalty Withholding Taxes - All Withholding Taxes are assessed in accordance with Fiji's general tax laws, however concessionary withholding tax rates of 10-20% for interest, dividends, and royalties, are available for treaty countries. Taxpayers may apply to the Minister of Finance for reduction or exemption from dividend, interest or royalty withholding taxes where such reduction/exemption is considered to benefit Fiji's economy. Fiji's Company Taxation Review In 1996, the Fiji Government completed a company taxation review which aimed to ensure that Fiji's company taxes are low, stable, transparent, in as many cases as possible non-discretionary, and internationally competitive. The review stemmed from a concerted effort by Government to improve the company taxation and incentives system in Fiji. The current process of reform is backed by the International Monetary Fund, and will be implemented between 1997 and 1999. Some of the new changes will be announced in the 1998 Budget Address. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] EXPLORATION AND MINING PROCEDURES Administrative Control over Fiji's Mineral Resources The administrative control over mineral resources is the responsibility of the Director of Mineral Resources Department in the capacity as the Director of Mines, although subject to overall policy control by the Minister responsible for mineral resources. The Mining Act provides for the State to retain the rights of access to all "minerals" defined under the Mining Act, and it is this right which can be granted to individuals through the issue of Prospector's Rights or Mining Leases. The administrative control over quarry workings lies with the Minister responsible for mineral resources. The Quarries Act (Cap. 147) provides for the regulation of quarry workings by Mines Inspectors appointed under the Mining Act. Role of Mineral Resources Department Mineral Resources Department encourages, facilitates and regulates the exploration and development of Fiji's mineral resources. MRD is the administrator and enforcer of the Mining Act, the Quarries Act, and the Explosives Act. When applying the Regulations in these Acts, the Director of Mines main aim is to ensure that good practices are employed in relation to health and safety of workers and in relation to the protection of the environment. The Mines Inspectors enforce the Mining Act and Regulations (Cap. 146), the Quarries Act (Cap. 147), and the Explosives Act (Cap. 189), and act as the regulatory body for the mining industry. Rights, Licenses and Leases Issued The Director of Mines, grants Prospector's Rights, and with the consent of the Minister, the Director also grants Prospecting Licences, Special Prospecting Licences, Permits to Mine, Mining Leases, Special Mining Leases, Special Site Rights, and Road Access Licences. Applications for any Right, Licence or Lease are considered on their own merit. The criteria for assessing merit are: the expertise and capability of the applicant to undertake the geological programme, any past record that the prospecting company has in mineral exploration, and the financial standing of the company in terms of its financial ability to undertake the proposed work programme. Priority of consideration is obtained when the necessary forms, duly completed, have been lodged at and accepted by MRD. A Prospector's Right allows the holder to prospect for minerals on any land open to prospecting in Fiji for a one year period. Prospector's can reapply for Prospector's Rights annually. Prospecting Licences and Special Prospecting Licences are usually issued for between one and five years. The terms and conditions of (Special) Prospecting Licences can be varied subsequent to an agreement between the licence holder and the Director of Mines. In arriving at this agreement, the Director considers certain criteria including: the appropriateness of the geological program outlined in the application; the minimum expenditure proposed in the application. Extensions to Prospecting Licences are normally available, providing any stated licence conditions have been met. Extensions of Prospecting Licences are normally made on a one year basis, although longer periods may be given. Extensions are subject to the same conditions as apply to initial applications, however, in the case of an extension, it is expected that minimum exploration expenditure will significantly increase with each successive extension. In "mature areas", where extensive prior work has been undertaken, or where a well known geological target is the subject of interest, applicants may apply for an initial Prospecting Licence of 2 - 3 years. In considering the grant of exploration rights over a "mature area" the Minister gives due regard to two factors: the Licence holders capacity/capability to undertake the proposed pre-feasibility/feasibility program, and, the likelihood that the grant will lead to a development decision on the prospect. While the Government of Fiji is very keen to encourage prospectors and mineral explorers in Fiji, it does not want to see prospective land tied up by companies interested in speculating on the value of the prospect and selling the tenement to make a quick profit. All Prospecting Licences, Permits to Mine, and Mining Leases are subject to established reporting requirements. Information and data regarding areas currently under licence are confidential to the MRD, although once prospecting or mining rights have been abandoned or relinquished, these data become the property of Government and become publicly available through MRD. Transition from Exploration to Development Progression from prospecting to mining follows the issuance of a (Special) Mining Lease as prescribed under the Mining Act, and in conformance with the various special terms and conditions agreed upon between the Director of Mines and the Licence holder. The issuance of the Lease is subject to two conditions. First, the submission of a comprehensive Feasibility Study which demonstrates the commercial viability of the project. The Feasibility Study will be accompanied by a detailed Financing Plan for the development and by an approved Environmental Impact Assessment document, detailing an acceptable environmental impact assessment process. Second, the completion of a Development Agreement outlining the broad principles, responsibilities, and obligations of all parties to the development. This Agreement would normally be prepared through consultation with the Licence holder, the Fiji Government, and representatives of the people of the development region. In general, new mining projects are handled as Executive Agreements between Government and the Licence holder. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Identifying a Mineral Prospect Fiji has the attraction of having a well-organised, complete set of all geological records and exploration data pertaining to Fiji, dating back to the 1800's. All companies prospecting, exploring or mining in Fiji are required to submit all data collected to MRD upon termination, surrender, or part-surrender of a Licence or Lease. All relevant reports are immediately placed on open-file in the MRD library, where they form part of the MRD Exploration Report series. In addition, mining-company open-file reports are indexed in the MRD Bibliography [1], according to licence number, and are catalogued by subject and location. All are available to the public for reference in the MRD library. MRD is now trying to digitise this data, much is now also available on computer file. Further specific information or advice can be obtained from MRD upon request. MRD has also been actively involved in mapping most areas of Fiji on a scale of 1:50 000, although certain areas, such as the Lau group and Rotuma, have been mapped in more detail. All of MRD's maps have been published and are available to the public on open file for consulting or copying. MRD also maintains are stock of other sources of information on the geology of Fiji, which provides potential investors with all the necessary information for an initial assessment of the prospectivity of Fiji. The following can be sent to interested prospectors on request: 1. the most recent edition of MRD's quarterly publication, the Exploration & Mineral Digest; 2. an annual review of exploration and mining in Fiji (for the previous calendar year) as published in Mining Annual Review by the Mining Journal, London; 3. Asia Money, special supplement on Fiji, in the September 1993 issue; 4. Metallic Mineral Deposits of Fiji, Memoir 4, 1995 edition, produced by MRD (ISBN 982-211-022-7); this provides an up-to-date geological review (i.e. to end of 1994) of all metallic mineral deposits and occurrences in Fiji; 5. Bibliography of the Geology of Fiji (12 Volumes available); 6. Bibliography of all company reports released on open file since 1983, this lists reports and provides a keyword index for each SPL, as well as summarises work done on some of the SPLs. The Exploration & Mineral Digest is sold for FJ$12.00 an issue, or FJ$48.00 for a yearly subscription. The 196-page MRD Memoir 4 is sold for FJ$20.00, all other information is sent complimentary. The Bibliography of company reports is nearly complete, but is only available as a draft at present; however, a computer disk copy can be made available at a nominal cost. In addition, a database catalogue was created at MRD to assist scientists in their geological-related work, by providing detailed information in an organised digital data format. This database catalogue contains, among other things, information in dBase format on mineral exploration geophysical surveys and mine tenements. When a mining company or prospector is ready to begin groundwork, then they need to apply to the Director of Mines at MRD for a licence. MRD issues and monitors eight types of leases and licences (see section on Exploration and Mining Procedures). MRD staff are able to assist with enquiries regarding any of these licences, to provide more information as to rights granted and obligations under each licence, as well as to detail information required at each stage of the approval process. Establishing a Mining company in Fiji In the event that preliminary prospecting activity has identified a potential area worthy of further exploration, the next step for an investor is to establish a mining company in Fiji (unless the investor chooses to operate as a branch of a parent company registered overseas). When a project reaches this stage, it is recommended, at this juncture, that the licence holder either utilises the business services of one of the many accounting and financial management firms in Suva to establish the mining company, or, the licence holder can follow the following procedures: 1. Submit a project proposal to the Fiji Trade & Investment Board to acquire in principle, tax and customs concessions, Reserve Bank of Fiji approvals and Immigration approvals. 2. Reserve a company name. 3. Once the project is approved, liase with RBF, Immigration Department, Customs Department, and Inland Revenue Department for registration purposes. 4. Register the company. Register the Memorandum and Articles of Association, and comply with Fiji National Provident Fund, and Fiji National Training Council, requirements. 5. Identify the tenement in which your company has an interest. 6. Apply to the Director of Mines at MRD for a waiver of pegging, or peg the area (see the section enclosed entitled Exploration and Mining: Rules and Regulations). 7. Advise the Director of Mines of the name of the person who will hold the Prospector's Right, or Prospecting Licence, ideally this person should be a Fiji citizen. 8. Advise the Mines Department of the name of the Accredited Agent, who holds their Power of Attorney in Fiji, and the name of an Authorised Officer, as per the requirements in the Mining Act. 9. Apply to the Director of Mines at MRD for a (Special)Prospecting Licence. In most cases the Director of Mines should be able to assist with providing contacts in other Departments, or can advise as to whom should be contacted at each step in the application process. [Back up to Contents...] [ Section 1-4 ] [ Section 5-7 ] [ Section 8-10 ] [ Section 11-12 ] Investors interested in obtaining information about Fiji's mineral potential should contact the Director of Mines within the Mineral Resources Department, which is located on Mead Road, Nabua, near Suva. The mailing address is Director of Mines, Mineral Resources Department, Private Mail Bag, GPO, Suva, Fiji Islands. The telephone contact number is (679) 381 611, and the fax number is (679) 370 039. Alternatively, more information can be obtained from MRD's web site at http://www.mrd.gov.fj The Commissioner of Inland Revenue can be contacted for enquiries about specific taxation issues. Inland Revenue Department is located in several buildings around Suva; the Commissioner's office is in Waisomo House, Gordon St., Suva. The telephone contact number is (679) 312 800, the fax number is (679) 304 936. The mailing address is: The Commissioner of Inland Revenue, Private Mail Bag, Suva, Fiji Islands. For queries regarding customs duties, the Comptroller of Customs should be contacted. Customs Department can be reached by telephone on (679) 302 322, or by fax on (679) 302 864. The mailing address is Comptroller of Customs, P O Box 175, Suva, Fiji Islands. In addition to these two sources, some of the major accountancy firms around the Suva area produce booklets on investing in Fiji, and provide information on taxation of foreign and local companies. Foreign investors may find these booklets especially useful. There are a number of other primary sources of information for investors, all of which aim to facilitate investment in Fiji. One such source is the Fiji Trade and Investment Board (FTIB). This was established specifically to assist investors with their enquiries about investment and business opportunities in Fiji. With the full support of Government, FTIB is working towards operating as a one-stop-shop for prospective investors to assist them in establishing their businesses. Government is in the process of improving the One-Stop-Shop concept. The new project approval process will only require the investor to submit a project proposal to FTIB, the FTIB will then liase with the various Government agencies on behalf of the investor. The FTIB can be reached by telephone on (679) 315 988, or by fax on (679) 301 783. They are located on the 3rd Floor, Civic House, Town Hall Road, Suva. For information, please write to: The Chief Executive, FTIB, P O Box 2033, Government Buildings, Suva, Fiji Islands. Access their web pages at http://computech.ftib.org.fj Alternatively the Ministry of Commerce, Industry, Trade & Public Enterprise could be contacted. The Ministry is able to offer general advice and information on investing in Fiji. They are located at Naibati House, 9 Goodenough St., Suva, and can be reached by telephone on (679) 305 411, or by fax on (679) 302 617. The mailing address is: The Permanent Secretary, Ministry of Commerce, Industry, Trade & Public Enterprise, P.O. Box 2118, Government Buildings, Suva, Fiji Islands. The Mining and Quarrying Council was established in February 1996. The Council is one of five councils which come under the umbrella of the Fiji Employers Federation. Each council looks after its own industry's interests, and provides a forum for discussion of issues which may affect the industry. The Chair is elected annually, but that person can be contacted through the Fiji Employers Federation (FEF), which is located at 42 Gorrie St., Suva. The telephone contact for the FEF is (679) 313 188, the fax number is (679) 302 183, the e-mail address is: employer@is.com.fj. Alternatively they can be contacted at Fiji Employers Federation, P.O. Box 575, GPO, Suva, Fiji Islands. The South Pacific Applied Geoscience Commission (SOPAC), originally CCOP, is a small, independent, inter-governmental, regional organisation established by several South Pacific nations in 1972. It aims to assist its members with the management and sustainable development of their physical environments through the application of geoscience. Its Secretariat is located next to Mineral Resources Department on Mead Road, Nabua, Suva. For more information about the work of SOPAC call (679) 381 377, or 381 139, or fax (679) 370 040. The mailing address is South Pacific Applied Geoscience Commission (SOPAC), Private Mail Bag, GPO, Suva, Fiji Islands. Visit their Web Site at http://www.sopac.org.fj The Geological Society of Fiji was created in July 1994 to encourage the advancement of geological sciences, to facilitate communication and cooperation among members, to investigate and report on matters of general interest to its members, to organise conferences and other scientific meetings, to seek preservation of important geological sites and to encourage the highest standards of technical competence and ethical conduct in the practice of geology in Fiji For more information about forthcoming events at the GSF, contact the Secretary of the Geological Society of Fiji at, SOPAC, Private Mail Bag, GPO, Suva, Fiji Islands. Geological research is undertaken at the University of the South Pacific within the Institute of Applied Sciences. IAS focuses on analytical laboratory work, and undertakes chemical analysis of rock and water samples for mining and exploration companies in Fiji. For more information about the work of this department at USP, contact The Director, Institute of Applied Sciences, University of the South Pacific, P.O. Box 1168, Suva, Fiji Islands, or telephone (679) 212 339, or fax (679) 300 373. Mining Companies Currently Active in Fiji Emperor Mines Limited's Australian address is Suite 605, Cliveden, 4 Bridge St., Sydney, NSW 2000, AUSTRALIA. The phone and fax contacts are telephone: (02) 251 2960, fax: (02) 251 2273. Mr. Chris Adsett, the Managing Director of PIGNL can be reached c/o: Pacific Islands Gold NL P.O. Box 553, Edgecliff, NSW 2027, AUSTRALIA. Their telephone and fax contacts are; telephone: 61 (2) 326-2133, and fax: 61 (2) 328-1607. The locally registered (wholly-owned) subsidiary company, Placer Pacific Fiji Limited has the following registered address: Placer Pacific Fiji Limited, P.O. Box 16161, Suva. The Fiji telephone contact is: (679) 322 800, and fax is: (679) 322 827. Footnotes[1]MRD has published 9 Volumes of its Bibliography, these are for sale at MRD. Volumes 10, 11 are in the process of being published and MRD has just started compiling Volume 12. |
|||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
